Trump threatens 25% tariff on Iran trade partners, including India
What's the story
United States President Donald Trump has announced a 25% tariff on countries that continue to do business with Iran, calling the decision "final and conclusive." This move is aimed at putting pressure on Iran amid rising unrest that has left nearly 600 dead and led to thousands of arrests. "Effective immediately, any country doing business with...Iran will pay a tariff of 25 percent on any business being done with the United States of America," he said.
Trade impact
US tariffs could reach 75% for Indian exports
The new tariffs could have serious implications for India, which has longstanding trade ties with Tehran. The US has already imposed a reciprocal 25% tariff on Indian goods and an additional 25% levy in response to India's purchase of Russian crude oil. This means that Indian exports to the US could now be subject to tariffs as high as 75%, which could severely affect competitiveness across multiple sectors.
Trade statistics
India-Iran trade figures and strategic projects at risk
India is one of Iran's top five trade partners, with bilateral trade standing at $1.68 billion in 2024-25. Major Indian exports to Iran include organic chemicals, basmati rice, tea, sugar and pharmaceuticals. The Chabahar Port project between India and Iran is also under threat due to the new tariffs. The port is crucial for India's regional connectivity plans and humanitarian supply routes. It is seen as India's gateway to Afghanistan and Central Asia by bypassing Pakistan.
Diplomatic relations
Diplomatic efforts to resolve trade tensions
According to trade specialists, this threat could jeopardize months of negotiations between New Delhi and Washington to secure tariff relief through a bilateral trade deal. Sergio Gor, who assumed charge as US ambassador to India on Monday, had called Trump and Indian PM Narendra Modi "real friends" who can disagree but "resolve the difference." Gor also confirmed that India and the US continue to "actively engage" on trade issues, with the next round of talks expected as early as Tuesday.